National Lotto: BOSA submits PAIA application to obtain identities of those tasked with awarding R180 billion tender

8 October 2024

Build One South Africa (BOSA) has today submitted an application in terms of the Promotion of Access to Information Act (PAIA) to obtain the identities of all persons appointed to adjudicate and award the R180 billion tender to operate the national lottery. This includes all consultants and experts advising the bid evaluation committee.

As a member of Parliament’s Trade, Industry & Competition Portfolio Committee, it has become apparent to me that the matter of the multi-billion-rand tender to operate the country’s national lottery is quickly becoming cause for concern.

There are a number of alleged conflicts of interest in the tender process. The first is Ms Lael Bethlehem, a former employee of a shortlisted bidding firm, Hosken Consolidated Investment (HCI), who is said to be involved in the bid evaluation process. The second is Ms Anne-Marie Pooley, who is a former employee of Vukani Gaming, a subsidiary of HCI. Pooley is on the bid adjudication committee.

In addition to these, there are claims that former Minister of Trade, Industry & Competition, Ebrahim Patel is linked to HCI.

Within the National Lotteries Commission (NLC), there have been questionable decisions. Contracts were awarded to companies such as Revco and Waymark without undergoing competitive bidding processes, a breach of Treasury Regulations and Section 217 of the Constitution, which demands fair, transparent, and cost-effective procurement.

There are allegations that Waymark operates as a "slush fund" and a parallel ICT division further deepen concerns about corruption and the lack of oversight within the NLC.

Finally, the NLC invested approximately R250 million in the Fusion Grant Management System, which was abandoned in favour of an unapproved and currently non-functional Modernisation 4.0 project, leading to fruitless and wasteful expenditure.

At R180 billion, the contract to operate the national lottery is the country’s largest tender. Given the amount of money involved, the process followed requires a high duty of care to ensure no malfeasance or wrongdoing by any party involved. 

For the sake of the vulnerable communities that rely on lottery funding, and for the preservation of public trust in government institutions, BOSA will leave no stone unturned in ensuring this process is open and transparent.

Issued by Nobuntu Hlazo-Webster, BOSA Deputy Leader, 8 October 2024